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(Reuters) – Saks Fifth Avenue owner Hudson’s Bay Co (TO:) has fallen short in securing enough shareholder support for a C$1.9 billion($1.4 billion) deal to take the department store operator private, people familiar with the matter said on Friday.
A buyout consortium of Hudson’s Bay investors led by its executive chairman Richard Baker did not win enough votes from other company shareholders by a Friday morning deadline for the deal to go through, the sources said. The sources cautioned that shareholders are allowed to change their minds through Dec. 17, when a special meeting of shareholders is planned.
The buyout consortium has 57% voting control over the company, but was not allowed to participate in the vote under the terms of the agreement with a special board committee that negotiated the deal on behalf of Hudson’s Bay.
The consortium’s next steps were not immediately clear.
The sources asked not to be identified because the matter is confidential. Spokespeople for Hudson’s Bay and Baker’s consortium did not immediately respond to requests for comment.
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